A month after the government decided to merge the profit-making farmers’ venture, the Nadukkara Agro Processing Company, with the government’s Vegetable and Fruits Promotion Council, Keralam, things have turned sour.
Production of the popular fruit drink, Jive, and fast-moving candies has come to a standstill. Farmers and company directors allege this is part of a move to put the profit-making establishment up ‘for sale’ to a European firm.
Aimed at lending support to pineapple farmers, the venture took shape in 1999 with farmers holding 70 per cent stake and the government the rest.
The European Union which was closely associated with the venture transferred the technology and exited the venture.
From juices to fruit concentrates, the company has been making profits and during the last fiscal it registered a profit of `1.38 crore.
Company sources say that the present board of directors took charge during the previous LDF regime and when the term of two directors ended early this year, two candidates put up by the UDF for the vacant slots failed to get through.
This made the government consider handing over the administration to the government through the VFPCK.
As a first step, managing director Murali Das’ deputation was cancelled. It was then decided to have a team from VFPCK ready the financial statement.
But sources in the finance department of the firm say that little has been happening since there is no reason for a profit-making government-supported company to be taken over by another similar organisation.
The order by the agriculture secretary dated June 2 states: “The above management set-up shall continue until an organisational setup, either in line with the present setup with necessary modification or a new company is formed in line with the public-private participation now being encouraged by the government of India, for ensuring full capacity utilization of the factory with the aim of offering economically viable support price to pineapple growers.”
“This PPP plan is part of a grand design to hand over the company to a European firm which has evinced interest in taking over the establishment.
The move is likely to take concrete shape during the Emerging Kerala investor meet in Kochi in September,” said a company director on condition of anonymity.